Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire

Workfare programs are one of the most popular social protection and employment policy instruments in the developing world. They evoke the promise of efficient targeting, as well as immediate and lasting impacts on participants’ employment, earnings...

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Main Authors: Bertrand, Marianne, Crepon, Bruno, Marguerie, Alicia, Premand, Patrick
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/420671617642830158/Do-Workfare-Programs-Live-Up-to-Their-Promises-Experimental-Evidence-from-Côte-d-Ivoire
http://hdl.handle.net/10986/35406
id okr-10986-35406
recordtype oai_dc
spelling okr-10986-354062022-09-20T00:09:26Z Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire Bertrand, Marianne Crepon, Bruno Marguerie, Alicia Premand, Patrick PUBLIC WORKS EMPLOYMENT PROGRAM WORKFARE TRAINING MACHINE LEARNING TARGETING HETEROGENEITY SOCIAL PROTECTION YOUTH EMPLOYMENT Workfare programs are one of the most popular social protection and employment policy instruments in the developing world. They evoke the promise of efficient targeting, as well as immediate and lasting impacts on participants’ employment, earnings, skills and behaviors. This paper evaluates contemporaneous and post-program impacts of a public works intervention in Côte d’Ivoire. The program was randomized among urban youths who self-selected to participate and provided seven months of employment at the formal minimum wage. Randomized subsets of beneficiaries also received complementary training on basic entrepreneurship or job search skills. During the program, results show limited impacts on the likelihood of employment, but a shift toward wage jobs, higher earnings and savings, as well as changes in work habits and behaviors. Fifteen months after the program ended, savings stock remain higher, but there are no lasting impacts on employment or behaviors, and only limited impacts on earnings. Machine learning techniques are applied to assess whether program targeting can improve. Significant heterogeneity in impacts on earnings is found during the program but not post-program. Departing from self-targeting improves performance: a range of practical targeting mechanisms achieve impacts close to a machine learning benchmark by maximizing contemporaneous impacts without reducing post-program impacts. Impacts on earnings remain substantially below program costs even under improved targeting. 2021-04-08T16:26:50Z 2021-04-08T16:26:50Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/420671617642830158/Do-Workfare-Programs-Live-Up-to-Their-Promises-Experimental-Evidence-from-Côte-d-Ivoire http://hdl.handle.net/10986/35406 English Policy Research Working Paper;No. 9611 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Africa Western and Central (AFW) Cote d'Ivoire
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PUBLIC WORKS
EMPLOYMENT PROGRAM
WORKFARE
TRAINING
MACHINE LEARNING
TARGETING
HETEROGENEITY
SOCIAL PROTECTION
YOUTH EMPLOYMENT
spellingShingle PUBLIC WORKS
EMPLOYMENT PROGRAM
WORKFARE
TRAINING
MACHINE LEARNING
TARGETING
HETEROGENEITY
SOCIAL PROTECTION
YOUTH EMPLOYMENT
Bertrand, Marianne
Crepon, Bruno
Marguerie, Alicia
Premand, Patrick
Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
geographic_facet Africa
Africa Western and Central (AFW)
Cote d'Ivoire
relation Policy Research Working Paper;No. 9611
description Workfare programs are one of the most popular social protection and employment policy instruments in the developing world. They evoke the promise of efficient targeting, as well as immediate and lasting impacts on participants’ employment, earnings, skills and behaviors. This paper evaluates contemporaneous and post-program impacts of a public works intervention in Côte d’Ivoire. The program was randomized among urban youths who self-selected to participate and provided seven months of employment at the formal minimum wage. Randomized subsets of beneficiaries also received complementary training on basic entrepreneurship or job search skills. During the program, results show limited impacts on the likelihood of employment, but a shift toward wage jobs, higher earnings and savings, as well as changes in work habits and behaviors. Fifteen months after the program ended, savings stock remain higher, but there are no lasting impacts on employment or behaviors, and only limited impacts on earnings. Machine learning techniques are applied to assess whether program targeting can improve. Significant heterogeneity in impacts on earnings is found during the program but not post-program. Departing from self-targeting improves performance: a range of practical targeting mechanisms achieve impacts close to a machine learning benchmark by maximizing contemporaneous impacts without reducing post-program impacts. Impacts on earnings remain substantially below program costs even under improved targeting.
format Working Paper
author Bertrand, Marianne
Crepon, Bruno
Marguerie, Alicia
Premand, Patrick
author_facet Bertrand, Marianne
Crepon, Bruno
Marguerie, Alicia
Premand, Patrick
author_sort Bertrand, Marianne
title Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
title_short Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
title_full Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
title_fullStr Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
title_full_unstemmed Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d’Ivoire
title_sort do workfare programs live up to their promises? experimental evidence from côte d’ivoire
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/420671617642830158/Do-Workfare-Programs-Live-Up-to-Their-Promises-Experimental-Evidence-from-Côte-d-Ivoire
http://hdl.handle.net/10986/35406
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